Local banks are doing their part to ensure local businesses can keep staff on the payroll through the coronavirus pandemic.
Last week, the Small Business Administration introduced the Paycheck Protection Program as part of the federal $2.2 trillion stimulus package. The program allows companies with up to 500 employees to receive a low-interest loan to cover up to two months of payroll and additional expenses.
The loan can be forgiven and essentially converted into a grant at the end of the two-months so long as each business meets certain criteria such as keeping all employees on payroll for the eight weeks. Local banks are acting as an extension of the SBA and are responsible for lending the money following approval of a loan by the SBA.
According to Lyon County State Bank President Brad Yount, as of Monday, they have received over 80 applications seeking a total of $7 million. ESB Financial Vice President Karen Sommers says they have received well over 100 applications seeking over $12 million since the program launched Friday.
Recent glitches have been reported with the new program since it launched. Both Yount and Sommers tell KVOE News the SBA’s system had crashed shortly before lunchtime Monday, however, Yount says before that the only real issue they had experienced was minor clarification issues regarding certain guidelines.
Sommers says the program has been a bit stressful for ESB staff, however, they have adjusted well and are working diligently to process the loans as quickly as possible.
For more information on the Paycheck Protection Program visit SBA.gov or click here.
